When demands placed by patient’s chronic health condition exceed caregiver’s capability, it leads to emotional distress in caregiver. The caregiver’s psychological wellbeing is negatively affected. The attitude and behavior of caregiver can lead to emotional distress in the patient. This in turn may have negative impact on patient’s psychological well-being. The present study seeks to understand the level of relation between psychological well-being of patients and their caregivers. It also attempts to identify the factors that lead to increase in emotional stress and reduction in psychological well-being of patient and caregiver dyad. Also, the study endeavors to find ways to reduce stress and enhance wellbeing of patient and caregiver. Finally, the study discusses suggestions about measures that can be adopted by caregivers and patients collaboratively to reduce stress and depression.